Mumbai, May 24 (IANS). The Indian stock market concluded this week with lethargy, as investors were struggling with global uncertainties and keeping an eye on major domestic events.
The Indian benchmark indices saw ups and downs, the Sensex and the Nifty remained in a limited range before closing with a slight decline.
The Nifty closed at 24,853.15 and the Sensex at 81,721.08, reflecting the cautious spirit of investors.
According to those who monitor the market, dull performance was recorded due to a combination of global and domestic factors.
Ajit Mishra, Senior Vice President (Research), Railways Broking Limited, said, “On the global front, concerns about the increase in the US bond yield and the US’s growing debt burden promoted the evacuation from foreign portfolio, increasing the pressure on emerging markets including India.”
In addition, speculation about favorable developments in the US-China trade deal increased the concerns about possible capital withdrawal or low flow in Indian markets, causing the sentiment to worse.
He said that on the domestic front, the delay in finalizing the mixed corporate income and the final form of Indo-US trade agreement increased uncertainty, promoting profits and vigilant stance among the market participants.
This week the sectoral performance was also mixed. Reality and metal remained the top performance sectors for the second consecutive week. Whereas, auto, IT and FMCG sector declined.
In broader indices, the smallcap segment recorded an increase of about half a percent, while the midcap closed down with a slight decline.
On the thematic front, the select shares of the defense sector remained interested in shopping.
According to analysts, the expectation of a normal monsoon, which is favorable for agricultural productivity and the fall in crude oil prices is likely to reduce inflation pressure.
In the coming week, a record dividend transfer of Rs 2.7 lakh crore will be done by the RBI to the government. Market participants will react to its impact on fiscal policy.
Additionally, experts stated that the release of India’s industrial and manufacturing production data for April has been scheduled for May 28. Also, the data of GDP growth of the first quarter will get information about the direction of economic improvement.
-IANS
SKT/ABM
